The travel ban on Egyptian business tycoons Onsi Sawiris and his son Nassef – Chief Executives of Orascom Construction Industries – have been lifted, following OCI’s settlement agreement with the country’s Tax Authority (ETA) to end 10-month disputes over EGP 14 billion tax claims.
OCI said in a statement that Egypt authorities decide to lift the travel ban on the company’s owners Onsi and Nassef as the firm has finally reached an agreement with the Egyptian Tax Authority.
OCI N.V.’s subsidiary of OCI S.A.E, announced on Tuesday that it will pay the Egyptian Tax Authority (ETA) ten installments during 2013- 2017 totaling EGP 7.1 billion less EGP 182 million in existing tax credits to end a dispute regarding tax claims for the years 2007 to 2010.
During that period, OCI SAE divested its cement business through the sale of a listed subsidiary, Orascom Building Materials Holding (OBMH). The agreed amount is based on the originally disclosed tax claim by the ETA of EGP 4.7 billion including accrued interest and delay fees.
As pursuant to the settlement agreement, the payments shall start with an initial payment of EGP 2.5 billion in Q2 2013, EGP 900 million in December 2013, six equal installments of EGP 450 million and two final installments of EGP 500 million in 2017 totaling the agreed to EGP 7.1 billion.
OCI N.V. will loan its subsidiary OCI S.A.E., the Egypt listed company, the necessary funds required for the tax settlement through intercompany loans to be coordinated and channeled into the country through the Central Bank of Egypt.
The settlement amount was reached following months of challenging negotiations. In conjunction with this agreement, the ETA has determined that there was no tax evasion by the Company and is exonerating management and the Company from any wrongdoing related to the transaction.
